In our series with 3d Investing, every month we throw a spotlight on a sustainable investment fund, exploring its process, portfolio and performance to sort the stars from the spin. This month, 3d has pulled out Fidelity Sustainable Water and Waste, a brand new fund launched to address one of the planet’s most pressing challenges: effective and sustainable water and waste management.
Vital fund statistics
Fund name: Fidelity Sustainable Water and Waste
Sector: Global Equity
Investment approach: Thematic
Launch date: 9 December 2019
Annual Fund Fee: 1.1%
Minimum Investment: £25 with Fidelity FundsNetwork (other platforms available)
The 3D View
Fidelity is one the largest asset managers in the world and is able to draw upon significant resources. Environmental, Social and Governance (ESG) factors are considered across all of the company’s assets using in-house ratings to assess stocks, rather than just relying on third party providers. Fidelity Sustainable Water and Waste is one of the first funds in their sustainability range, with a clear thematic focus on the water and waste management sectors, both of which are underpinned by strong demographic drivers. At least 70% of the investments in the fund have to score favourably on ESG characteristics, with engagement being used to improve the performance of the remainder. The fund is relatively new, but there is clear evidence of the strong thematic focus and rigorous application of ESG, backed by the resources of a very large asset manager.
Sustainable investment areas
Fidelity Sustainable Water and Waste
Making a Difference
Fund manager Bertrand Lecourt highlights areas for improvement in investee companies, focusing on the most material issues. Engagement with the companies the fund invest in is pro-active and seeks the adoption of best practices and outcomes are tracked. The managers also participate in advocacy programmes with other investors and organisations to raise standards and work together for change.
Impact of Fidelity Sustainable Water and Waste
|INVESTMENT||SOLUTIONS||POSITIVE PRACTICES||LIMITED BENEFITS||HARMFUL IMPACTS||CASH|
|Fidelity Funds Sustainable Water and Waste||88.5%||2.2%||6.6%||0%||2.7%|
Fidelity Sustainable Water and Waste launched on 9 December, and so has very little performance to speak of. As we are also currently experiencing a sharp market downturn, current figures are a little meaningless. Water and waste management are, however, strong long term themes that are likely to perform well over time.
Fidelity Sustainable Water and Waste
√ Exclusive focus on investments with a high positive impact
√ Annual sustainability report
√ Monitoring of key impacts
√ Positive influence on companies and within the industry
√ Low exposure to harmful industries
To find out how to invest in funds, check out our simple guide: ‘Make Responsible Investments in 4 Easy Steps‘
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DISCLAIMER: The information provided in this article shall not constitute or be deemed to constitute any invitation or inducement to any person to engage in investment activity. Should you undertake any investment activity based on information within this article you do so entirely at your own risk. The value of an investment in funds can fall as well as rise, as can any income payment received from an investment. Any information relating to past performance is not a guide to future performance. If you are unsure of an investment decision you should seek professional financial advice. 3D Investing is run by Ethical Money Limited which is a wholly owned subsidiary of Square Mile Investment Consulting and Research Limited.